Navigating the “next normal” world, marketing and go-to-market (GTM) teams have been under new pressures due to inflation, talent shortages, slower economic conditions, possible renewed COVID restrictions, and the digital transformation hangover. Here are four deeper dive areas where success can be found.
#4 Defend marketing efficiency and effectiveness above budget
CEOs and boards can look to scale back go-to-market efforts, leaving marketing in a defensive stance when it comes to budget. But this can have dangerous consequences. Prospects are still heavily influenced by the people around them, by companies they can trust, and by the recency of the wealth of information available.
When sales and marketing are in alignment, deals are 67% more likely to close. Successful alignment can even produce more than double the revenue, even in challenging environments. Price and product are only two of many operational GTM levers, and reducing marketing budgets can create significant downward bottom-line margin pressures rather than fuelling recovery and growth.
A note on the martech front
2023 marketing budgets grew at a 72% slower rate than the previous year, according to a Duke CMO survey. Much of the budgets were devoted to martech in service of the need for accelerated digital transformation. However, most digital transformation initiatives have struggled to show near-term returns. Smaller digital transformation projects yielded far greater returns (an increase of around nine to 22 times) in the last three years than larger, over-designed ones.
#3 Review your vendor selection process
The cost of resistance to technology investment was greater than the margin for error. In an accessible-money-fueled environment, there was an overabundance of investment. Now, the need is to return to a systematic and accountable approach.
Review both heavily contested and fast and unanimous decisions. Analyze past buying committee votes for both heated decisions and ones that sailed through. This is a fast way to make decisions on winding down investments and provides clarity on how future investments with vendors are made.
#2 Culture of value creation (not growth hacking)
Growth hacking developed bad connotations because of its low probability of success, poor strategic value, opportunity costs, and unnecessary corporate and brand risk. Instead, “value creation” is a term to describe building an offering around a must-have solution to a customer’s needs.
Revisit the value gaps in the market, invest more in market intelligence, and create or collaborate in building incentives for value creation.
#1. Second-level thinking and market share
Market share strategies took a backseat to growth at all-costs tactics, but companies (and leaders) that last and generate greater returns use second and third-order thinking when considering the next two or three moves. Market share strategies are a second-order level of thinking.
Your company can gain market share in several ways, including improving CX, acquisition strategies, innovation, opening new markets, investment in partnerships, and good positioning.
Allow marketing and GTM leaders to make their case before imposing any budget cuts. Review and revisit decision-making processes. Focus on market share in accelerating growth during the next economic boom. Be the hero at your next quarterly business review and earn the respect from your boards who will, in return, sustain or increase your budgets and access to resources.
Originally reported by Martech: https://martech.org/how-to-tune-your-gtm-strategies-to-cope-with-budgetary-headwinds/
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